Estonia: Coalition agrees on new tax for national defence

Estonia’s ruling coalition parties have agreed to introduce a new tax to fund national defence, ERR reports. Incoming prime minister Kristen Michal of the Estonian Reform Party stated that the tax would likely combine increases in VAT, income tax, and excise duties. The aim was to distribute the financial burden evenly across different societal groups, he said. Estonia 200 chairman Margus Tsahkna and Social Democratic Party (SDE) chairman Lauri Läänemets stressed that companies should also contribute. However, Tsahkna ruled out a corporate tax, suggesting adjustments to dividend and personal income taxation instead.